Child’s Play (GDX,XLP,DIA)

Child’s Play (GDX,XLP,DIA)   It’s fun to be a kid in the summertime, and play all those games.   When we were little, there were a bevy of inventive minds on our street, children who were just as happy to make up their own amusements as play ‘Kick the Can’ or ‘Hide and Go Seek’.   There was Stewie Ferguson, for example, who invented a real doozy of a game called “Smell my Finger”. The Viccari twins, I think, made up “Where’s the Worm?” And both those games, of course, became threateningly exciting when a blindfold was added to the mix.   It was rompus fun for all, summer and winter, too, when the O’Malley dog had puppies and we sat in a circle around the Sedgewick’s chestnut tree playing “What’s Barney Licking?”   How Little Things Change…   Today, the blindfolds are still on while investors carouse with “Run up the Techs” and “Valuation Revulsion”. And while no one seems ready to join in a round of “Pliny the Prudent”, we’ve decided to initiate a bout of that classic game today, regardless of who throws in with us. We’re not the only ones peddling the commodities story these days….

Read More

Jimmy! We’re Stuck in a Market Maelstrom! (GDX,DIA)

Jimmy! We’re Stuck in a Market Maelstrom! (GDX,DIA)   That’s the way bookie fumbles, folks.   You enter the casino either as an oddsmaker or a bettor, and it doesn’t matter which – in both roles you run an equal risk of exiting a loser.   And that’s the lesson of the last week in equity markets, too, a period that witnessed volatility jump from near record low levels to VIX 50 yesterday!  A 1600 point drop on the Dow also made history.   Yet the masses still don’t understand the nature of the beast.   If sentiment levels are any guide – and they should be, because that’s the only thing that’s truly guiding markets these days – we’re still in for a wham-doggy selling event in the weeks ahead, one that could make Monday’s six percent intraday decline look like a drugged out monkey on a 70’s sitcom. The total decline from the top registers at slightly more than 10%, qualifying as a ‘correction’ for those who like to define these things by the numbers.  But while many believe there’s more to come, the market’s follow through on Tuesday provides near term hope for the bulls.   Why?…

Read More

What are ya? Some Kinda Martian from Pluto!? (GDX,GLD,XBI)

What are ya? Some Kinda Martian from Pluto!? (GDX,GLD,XBI)   We get a good bit of hate mail.  Some of it derides our penchant for options trades, a realm of investing that many believe too fraught with danger to enter.  Others believe that options trading is only for the ultra-wealthy, as margin requirements make a good number of our trades prohibitively expensive to launch.   And we admit it’s sometimes the case.   But the hate mail that’s most venomous generally revolves around the ‘market top’ theme that we regularly write and recommend toward. Beyond our understanding that this greatest of all bull markets is now in the process of making a final blow-off top, the heights of which no one will accurately estimate, there’s also the issue of the social, economic and political fallout that ensues from such a topping process – and the fundamental change in lifestyle that surviving that process will entail.   Lifestyle Change?  No big deal…   No, we’re not talking about a little less or more meat in your diet, or going minimalist in the apartment instead of forging a “San Diego Dry” look.   Fundamental means fundamental.   And that means almost nothing…

Read More

Organic Investing (HAIN,LMNR,GDX,JPM)

Organic Investing (HAIN,LMNR,GDX,JPM)   The real question is how many people are prepared to put a seed in the ground, water it and watch it grow, helping it along with whatever nourishment it requires – fertilizer, water – until such time as its fruit can be plucked and eaten.   Are you among that bunch?   And why is it so important?  Why is it ‘the real question’?   Call us crazoids and renegades, but that’s the way we see it.  The time’s a’coming when those who can pull their sustenance from the good earth will be the ones to endure.  While those who rob, steal and fake their way through life, posing as specialists and experts of every whatnot and wherefore, will politely be shown the door. And will more than likely starve.   Because the only real skills one needs in this world are those of the farmer.   You heard it right.   Ask him how he grows his fruit and vegetables, and pay attention.  Let him explain the details of animal husbandry, how he procures his meat, milk, fish and eggs, and write it down – every word.   Because there’s little more that will get…

Read More

Salvation Arriveth! With a Lithp (GDX)

Salvation Arriveth! With a Lithp (GDX)   There’s little more to be done.  It’s now time to sit back and let the whole cursed affair unfold the way it must – with a bang and a bellow and a long draw of gin.   What we’re talking about is war – the longest war.  It began back in 1950 and there’ve been cease fires and flare-ups, but there has been no victor – and there’s certainly been no peace.   But all that’s going to change now.  Now, we’re going to bring things to a head.  That little peninsula on the far side of the ocean, where North and South Korea abut, and China and Russia and Japan share borders – or are close enough to call each other neighbors – are about to erupt like a star. In short, in a place where close to two billion people have a vital national interest, and we have tens of thousands of troops and a vast storehouse of weaponry parked and waiting to act – the simmering is now all but complete, and the time has come to begin cooking the meat, bringing the pot to a boil, adding spices and…

Read More

Normandy Brass Indicted for Deep Sea Slave Ring! (NVDA,TSLA,GDX)

We’re going to lead off today with a recap of our year-end predictions from Stock Market Superhero, our annual foray into the dark arts, in which we dipped our Ouija boards and crystal balls into our witchy Normandean tea leaves to offer you our best thinking on the last half of the year.   In this installment of Wall Street Elite we report on just how accurate those predictions were.   And we lead off with the Dow.   Our prediction for the grand-daddy of all indexes was…   On the Last Day of 2016, you can expect to see the Dow Jones Industrial Average to be cruising in the vicinity of 20,000, though we’re still not certain if that’ll be on its way up or down.  From today’s levels that’s a gain of some nine percent.   And ladies and gentlemen, that’s precisely what happened.  The Dow closed last Friday at 19,762, a mere 1.19% below our keenly calculated prediction, making us, if not Kings of the World and Masters of the Galaxy, at least worthy of your continued servitude. The NASDAQ Composite, we suggested, would be trading at 5650.   As it turns out the COMP closed Friday…

Read More

Goose Feast! (RSX,SWHC,GDX)

Many will consider it a banal observation, but we believe it otherwise.   The phenomenon of new money – brand new money – entering the stock market after years on the sidelines, is of monumental significance and is going to accomplish several important things.   But before we outline them, take a look at exactly what we’re talking about.   Here’s an amalgam of two charts, the Dow Industrials and Transports, that includes volume figures for the last two years’ trade. The chart makes it clear that something extraordinary has taken place.  To wit, a buying spree that outright dwarfs the trade of the last 24 months – indeed, in terms of sustained day-over-day volume, we have not witnessed turnover this strong on the Dow since the bull market began in March of 2009, and on the Transports AT ANY TIME IN THE LAST TWO DECADES.   In short, this is nothing to be taken lightly.  It’s a phenomenon, plain and simple, and it signals unequivocally that we’ve entered a new phase – whatever that may be.   So what does it mean – what’s really going on?   Glad you asked.   First of all, this is not the…

Read More

Cancel the Rally! The Prez is a Ruskie! (LUK,HSY,GDX)

How many times do you have to be told?   When your betters know what’s good for you, you don’t question them.  You bloody well listen up, take your medicine and shut your bellyaching trap.  The days of you choosing what’s best for you are over, dearie.  You’ll simply have to get used to it.  Those in the know will decide.   Or, as someone once pithily put it – the strong do what they will, and the weak suffer what they must… We’ve come a long way from democracy serving the will of the people, from elections being a test of ideas, and from public service stemming from a desire to enact the decisions of the commons.   As they say these days, everything is now political.   The aim of political parties and individual representatives has lost its idealism altogether and has veered off in blind adherence to whatever orthodoxy is currently espoused by party elites.  That means the idea of elections being an expression of the people’s will was buried some time ago in favor of them being simply an opportunity to steamroll people with a messianic, win-at-all-costs campaign that, in turn, enables the implementation of an…

Read More

Markets Go BOING! (GDX,SLV)

We’ve got our eyes fixed on several items at the moment – the first is the dollar, the second the bond market, particularly the long end of the Treasury curve.   We’ve discussed both at length, and readers of these pages are familiar enough with our views.   So for those who are new to the glorious halls (and impeccable wit) of the Normandy mansion, we sum it up for you here in brief –   First, the dollar will continue to rise, particularly as the U.S. equity market and American assets are come to be seen as the last game in town.   The bond market will continue to sell off, with the lion’s share of the fund flows streaming into equities, as inflation and rising rates begin to bite, and all become convinced that the current tightening cycle is for real.   Both of the above processes will gather momentum as soon as the Fed is perceived to be behind the curve, and inflation becomes a thing to be feared rather than desired. But this last development could be a ways away.  Numbers #1 and #2 are not.   Paying More? Have a look at the following –…

Read More

The Madness of Trade Liquidation (TLT,AAPL,OLN,PM,MO,GDX,IYT)

You’ll have to forgive our French, but there are several sectors of the market that are taking an absolute ass-kicking at the moment, and we’d be completely remiss if we didn’t pony up and say something about them.   The first is the long bond – the entire Treasury complex, in fact – that’s been given a vicious stomping of late; its worst takedown in a year and a half.  But when you throw in the technical damage done, we can’t remember seeing a month this bloody since the meltdown of 2009 gutted close to 30% from Treasury investors’ pockets.   The second is the precious metals, including gold, silver and the miners, all of which have seen tremendous declines in the last three months and which could stand to lose significantly more if the stock market continues on its sexy way, drawing in fresh flows of funds from all manner of suitors domestic and foreign.   The third is a number of big tech and internet names that we’ll likely have to address in a coming letter.  There’s just too much to deal with given the space we have.   The Coming Madness   We’ll look at the charts…

Read More

Powered by WishList Member - Membership Software
GET YOUR FREE SPECIAL REPORT:
"THE SEVEN DEADLY SECRETS OF CHINA"

GET YOUR FREE SPECIAL REPORT:

"THE SEVEN DEADLY SECRETS OF CHINA"

Enter your e-mail address to claim your FREE Special Report “The Seven Deadly Secrets of China”

You have Successfully Subscribed!